High-five to Karbonn, Micromax, Maxx, Lava, Lemon, Spice, Pagaria & Videocon mobiles

Normally it is believed that the first mover into a market always has a clear advantage over the competition but I think India as a market veers from this universally applicable thumb rule time and again. Famously the likes of Cokes etc., the successful elsewhere globally, accepted to have failed to understand this market at the first go.

Before I completely move off the track, let me come to the point. Nokia, Sony Erickson, Samsung, LG have been strongly present in Indian mobile phone market for close to ten years. Finnish global giant Nokia, probably riding on the fact of being the first mover, remained a clear leader even in Indian market for considerable period with its easy-to-use mobile phones and track record of regularly launched models offering improved features etc. Slowly other global brands such as Sony Erickson with its proven mastery especially in music related features and Korean firms Samsung and LG with lower price band took a part of Nokia’s pie for the past several years. Even several Chinese brands including BenQ also keep getting attracted to take a bite of lower end of a market sporadically.

Come 2008-09, and the scene is changed surprisingly. I am talking of a trend which saw horde of homegrown mobile brands sprung to life; even before the global counterparts acknowledge and understand a bunch of names such as Karbonn, Micromax, Maxx, Lava, Lemon, Spice and Pagaria etc. started crowding the market space. Latest to join the band wagon is more known Indian brand in the electronic goods’ space – Videocon. Being a proud Indian, it definitely is heartening to see many indigenous mobile manufacturers ruling the scene in just a short span of time. Even without scrutinizing their sales figures one can safely assume these companies to be doing good by looking at their enviable aggression on brand promotion front. In a cricket crazy nation like India, these companies must have paid dearly to be a lead sponsor of many high-profile cricket events in the recent past; this trend indirectly proves their aggressive intention. In line with this, Akshyay Kumar, M S Dhoni, Sonam Kapoor and group of leading cricketers including Virendra Sehwag, Gautam Gambhir and Virat Kohli respectively to be their brand ambassador.

The reasons behind these companies’ success are several; one prime positive is India being a large market in itself with primary part being a cost conscious middle and lower class. Consumers representing this huge chunk are knowledgeable enough to expect latest features at lower price. Indigenous companies are benefited by the fact that they entered the market late – latest features and technologies which were developed at higher R & D costs by the leading global brands were now available for these Indian companies to replicate rather easily. Another positive for these Indian companies is rooted in the fact that many Indians in general, like the author, are not lured blindly by brand names; as a representative of this particular sect, I personally base my buying decisions mainly on product’s utility; outward appearance and attached brand name comes last in my decision.

Indian market’s huge size provides enough incentive to indigenous companies to plunge into mass production for many products; this makes a perfect sense behind what I noticed during my stay in the Gulf market. All the global vehicle manufacturers including two-wheelers from India are present there. And even with amazingly deep pockets none of the Gulf countries have produced any indigenous manufacturer of automobiles or electronic goods etc.

Kudos to Indian markets to inspire indigenous manufacturing.